The path to IPO: funding SME jobs and growth

Cutting emissions coverTom Papworth and Adam Corlett

February 2013

High growth small and medium sized enterprises (SMEs) are key to innovation and job creation, but they struggle to access the expansion capital they need in a UK economy over-reliant on bank debt.

This report argues that equity finance has a key role to play in enabling high growth SMEs to achieve scale, as part of a much needed diversification of the funding ecosystem. In particular, it looks at the underused potential of public equity markets - both Initial Public Offerings (IPOs) and further fundraising.

Drawing on international comparisons and new analysis from market experts, the authors recommend a package of measures to expand the high growth SME investor base, boost liquidity and reduce the cost of capital, increase awareness of high growth SMEs, and rebalance a tax system that currently discriminates against equity in favour of debt.

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"The government is committed to ensuring SMEs can access equity finance more easily, especially those businesses with high growth potential helping to create a stronger economy. CentreForum's report contains some interesting ideas for how access to equity finance for SMEs can be improved."

- Rt Hon Dr Vince Cable MP, Secretary of State for Business, Innovation and Skills

"We wholeheartedly support the recommendations in CentreForum's report. Improving access to equity finance for small and growing businesses should be an absolute priority for both policymakers and market participants. Job creation and economic growth rely on the ability of our innovators and entrepreneurs to adequately finance their ambitions, while avoiding over-reliance on debt"

- Xavier Rolet, Chief Executive of London Stock Exchange Group

Click here to read the CBI response to the report

Select media coverage: BBC Radio 4 TodayFinancial Times

 

Delivering Dilnot: paying for elderly care

Cutting emissions coverPaul Burstow

January 2013

The recommendations of the Dilnot Commission on Funding of Care and Support have won widespread support from the sector and across the political spectrum. Demographic changes over the coming decades mean that reform can no longer be postponed. The question now is whether the government can find the resolve - and the funding - to deliver practical reform that works for Britain.

'Delivering Dilnot: paying for elderly care includes pieces from a wide range of contributors, from Paul Burstow MP - former Care Services Minister under the Coalition - and Lord Sutherland - former chair of the Royal Commission on Long Term Care under Labour - to a carer and a pensioner who face our current broken system.

It emphasises that tough political deceisions must be made to deliver reform, and proposes how it can be funded a way that is fair and sustainable. The report also looks at what the private sector needs in order to deliver the necessary insurance products.

Together, these contributions make the case for Dilnot's proposals, and show how they can be realised without further delay.

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Select media coverage: BBC, Channel 4, Evening StandardGuardianITV, Sky News, Telegraph

Bigger and quieter: the right answer for aviation

Cutting emissions coverTim Leunig
October 2012 [published in conjunction with Policy Exchange]

'Bigger and quieter: the right answer for aviation' examines all the options for increasing airport capacity in the UK. It supports placing four runways immediately west of the current Heathrow site. This would double the existing capacity to 130 million passengers, cementing it as Europe's premier hub.

The report says that the UK needs a new hub airport located in the South East which has spare capacity to accommodate the likely increase in demand, especially to cope with the rise in middle class travellers from emerging markets.

It doesn't rule out the current proposal to build a third runway to the north of Heathrow, but claims that less people would be affected by aircraft noise if the four runways were instead located three kilometres to the west of Heathrow.

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Freedom, fairness and responsibility: a submission to the Autumn Statement 2012

Adam Corlett, Tom Frostick and Sean O'Brien
November 2012

The Autumn Statement on 5 December is an opportunity for the coalition to reflect on the past two and a half years in government and renew its commitment to the values of freedom, fairness and responsibility.

This paper sets out a number of specific proposals that we would like to see contained in the Autumn Statement. The intent and purpose of the paper is deliberately narrow.

We put forward practical ideas that would realise important savings and additional revenue for the Exchequer at a time of fiscal consolidation. However, we do not enter into the broader political debate over the government’s fiscal mandate or the appropriate ratio between tax increases and spending cuts.

Our proposals deliver tax reforms and marginal savings to the welfare budget, raising over £17 billion in total. We also call for supply side reforms that reduce red tape and boost economic growth.

Download the full report.

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Select media coverage: ConservativeHome, New Statesman (Staggers), Public Finance

Cutting emissions and making cars cheaper to run: a new approach to vehicle excise duty

Cutting emissions coverTim Leunig

October 2012

In this report, CentreForum argues that replacing vehicle excise duty with a one off emissions charge on new cars would cut 2.6 per cent off total UK carbon emissions after 15 years and lower running costs for motorists.

Under this revenue neutral scheme, the government would set an annual emissions "pivot point" equal to the emissions of the best performing one per cent of cars the previous year. Cars with emissions below the one per cent level would receive a subsidy. Cars above this level would attract an emissions charge.

The scheme will give car manufacturers a big incentive to produce more efficient vehicles. This in turn will lower costs for motorists, who over time will see a reduction in their fuel costs.

CentreForum has calculated that its scheme will cut fuel use by around 450 gallons over a 100,000 mile lifetime, saving motorists around £2,700.

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Select media coverage: Mail OnlineDaily TelegraphThe Sunday Times

"I welcome this report. It is exactly the sort of innovative thinking we have come to expect from CentreForum."
- Rt Hon Ed Davey MP, Secretary of State for Energy and Climate Change,

"This is a great proposal with strong rationale."
- Kate Barker, former chief economist at Ford Europe

"Worth consideration..."
- Roger Harrabin, BBC environment analyst

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